Nov 29 2011
New World Gold Corporation has announced that is has acquired a second mine in Peru. The mine was ready to go on production but had no milling capability.
The NWGC mill in Los Lamos area in Peru is less than 10 miles from the new mine. The NWGC mill has the capacity to process all of the ore that is available from the new mine. In the first three days of production the new mine delivered 95 tonnes of ore to the NWGC mill. The average results from this ore were 23 grams per ton of gold, 2000 grams per ton of silver and 1% copper. Internal reports indicate that this mine has 25,000 proven developed ozs of gold and another 40,000 ozs of proven gold reserves that need some development work before being brought on production, as well as 20,000 ozs of proven developed silver reserves.
This acquisition is very good for the NWGC as it already has operations in the area including a fully operational mill with the capacity to accommodate the ore from the new mine. This will result in a significant increase in cash flow from Peru operation. By the middle of February 2011, the Peru mill will have a capacity of 150 tons per day with an anticipated average head grade of 1 oz of gold per ton.
The Company will continue to increase reserves and production through the acquisition of small non producing mines. The fact that the Company owns the mill means that it can bring these non producing mines on production immediately.
Source: www.newworldgoldcorp.com